The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-11-18

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repealed in terms by the Second
Act, nor can we find anything that
repeats it by implication. The First
Act authorized the loan and the
issue Of bonds; the Second Act
amended sections 2, 3, and Of the
First Act, and it left the remaining
sections /, 5, 6, and z Of this Act
untouched. Section 5 is therefore
in force, and is the only authority
for the payment of any commissions
or expenses out of the avails of the
loan.
The third question: If said sec
ton 8 is in force, does the same ex-
clude payment of any expenses for
floating the loan, etc, other than
the per cent commission?
We answer: The terms of Sec
ton 3 authorize, first, the payment
of the commission allowed by Sec
ton .. This must be considered
now to refer to section as amended.
This allows u commission, which is
not to exceed per cent to the per-
son or syndicate negotiating the sale
of the first issued half of the loan TO
wit 81 900, 900. These bonds being
sold at not less than SO per cent of
par value, and likewise a commits
sion not to eXceed5 per cent for ne
gotiating the remaining issues.
Section 5 also authorizes the pay
ment for preparing such bonds and
coupons. The plain intendment of
these words cannot be extended TO
mean the payment of charges in the
nature of advertisement, brokerage,
guarantee, English stamp duties
etc, such not being expenses for
paper, engraving and printing of
bonds and coupons.
If the Financial Agents employ
ed by the Government have in
cured other expense, which are
deemed reasonable and necessary
by the Legislature, they should be
paid from such appropriation as the
Legislature may make, but as the
appointment of this agency is out
side the Act, the expenses thus in
Cured are not payable out of the
avails of the loan.
Question 4: 'In any case, is the
item of $1,000 in section 3 of the
Amended Act intended to be in adj
dition TO such per cent commits
sion?"
We answer: The item of $780,
600 appropriated for expense of
floating loan, ETC., cannot be in
tended to be in addition to the 5 per
cent commission, first, because
there is no provision elsewhere for
the payment of the per cent.
Secondly, because the phrase "ne-
gotiating the sale' of the bonds
cannot be considered as anything
but floating loan. What is the 3
per cent given for but for negotiat-
ing, i. e., floating the loan, and that
is what the 500, 900 is appropriated
for, and there is no other appro-
| priation for anything else of the
like nature, the balance of the 81
100000 being specially appropriated
for other objects. The 100000 is
evidently an estimated sum, for, in
the first Act it was put at $50, 900
presumably because no commission
was to be allowed by the Act for
bonds sold in this kingdom. More
over the commission being fixed at
a maximum of 3 per cent, it was
contemplated that the business
might be done for q lower rate.
Question 5. Is any engagement
for bonds payable in sterling money
valid under said Loan Acts of
1886?
We answer: The bonds must
conform to the terms of the Acts.
The whole scope and intent of
these is for bonds to be issued by
the Hawaiian Government for GER
tain sum, to wit, so, 000,0 in U. S.
gold coin, or its equivalent, in de-
nominations of not less than 500.
1t is nowhere provided In the Act
that this is to be a loan designed
for the English money market and
to be converted by the Minister of
Finance into bonds Of which the
principal and coupons are to be
payable in sterling money. The
bonds are to be issued by the
Minister of Finance, TO be sold in
this kingdom or anywhere else in
the world to whoever may desire
to invest money in such security.
The bonds issued under these
Acts certainly are to be all of one
form-a form conforming to the
statute in other respects, and in
this that they are bonds for
amounts expressed in dollars-not
in pounds for the London mar
ket, francs for the Paris Bourse, or
marks for the German markets. 1t
is in our view a mistaken and I'M
warrantable impression that this was
a specific English loan,
The Acts specify U. S. gold or its
equivalent. This must be con-
sidered as permitting mode of
payment and not variation of the
terms of the bonds.
Thus, the coupons or bonds may
be paid in such amounts in SOW
ereigns or U. S. silver as would be
equivalent or equal to the amount
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